Current Account Deficit Shrinks to $160 Million in August

Pakistan’s current account deficit improved by $615 million to $160 million in August 2023 compared to a deficit of $775 million recorded in the previous month. According to data released by the State Bank of Pakistan (SBP), the current account deficit (CAD) was also substantially down compared to deficit of $774 recorded in the same month of the previous year. The current account deficit during the first two months of the current fiscal year (FY24) stood at 935 million, compared to deficit of $2.03 billion recorded in the same period of FY23. It is pertinent to mention here that the July was the first month in 5 months when the country’s current account posted a deficit. In the previous four months, i.e. March, April, May and June, the current account posted a surplus. The surplus in March stood at $0.79 billion, April saw a surplus of $0.08 billion, May’s current account surplus stood at $0.22 billion while the surplus in June was recorded at $0.50 billion. The deficit in the last two months is primarily due to the easing of import restrictions.